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Interpreting 276k pre-orders of Tesla Model 3

276 000 pre-orders for the Tesla Model 3 within 3 days – it is hard to overestimate the significance of this signal. It shows two things:

There is a marktet for electrical cars today, and it’s huge

Tesla pretty much meets the customer requirements for a lot of people, in terms of

range: 350 km

form factor and measurements (no SUV!)

design: elegant sporty (not futuristic!)

The deposit of 1 000 Dollar is cleverly chosen: the amount is low enough to be parked for a future investment without impacting current spendings and high enough to make it only reasonable for people with a real willingness to buy.

This order intake with enormous value (276k * 42k Dollar average selling price = 11.6 Billion Dollar), should make it quite easy for Tesla to walk into a bank and get the money necessary for building up the production capacity at a very low interest rate. This means the production ramp up will be earlier due to high pre-orders. And this means that Tesla is able to improve on its only competitive weakness. I think I am not going too far with my interpretation of that signal predicting that Tesla will stay on top of the electrical car market as it turns mainstream.